IKEA Announces Closure of Memphis Store

Furniture retailer cites changing customer needs and shopping habits as reasons for shuttering location after less than a decade.

Published on Feb. 10, 2026

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IKEA has announced plans to permanently close its Memphis, Tennessee store on May 3, 2026, as part of a broader strategic shift toward a more affordable, accessible, and sustainable future. The retailer cited factors like market share, business performance, cost structure, and optimization of physical assets in its decision to shutter the location, which opened in 2016.

Why it matters

The closure of IKEA's Memphis store reflects broader changes in the retail landscape, as major brands adapt to evolving customer preferences and shopping behaviors. This decision highlights the challenges traditional brick-and-mortar stores face in an increasingly digital-first environment.

The details

IKEA said the closure of the Memphis store is part of a strategic shift to focus on strengthening home delivery and pickup services, enhancing digital capabilities, and modernizing physical locations. The company plans to invest $2.2 billion to improve accessibility and grow the brand, including opening 14 new stores in 2025 with additional locations to come in 2026.

  • The IKEA Memphis store opened in December 2016.
  • IKEA announced plans to permanently close the Memphis store on May 3, 2026.

The players

IKEA

A popular Swedish furniture retailer that operates stores worldwide.

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What’s next

IKEA says it will offer severance packages to impacted employees who are unable to transfer to other locations, and the company remains committed to expanding its presence in the U.S. through new store openings, enhanced delivery and pickup services, and digital capabilities.

The takeaway

The closure of IKEA's Memphis store reflects the evolving retail landscape, as major brands adapt to changing customer preferences and shopping behaviors. This decision highlights the challenges traditional brick-and-mortar stores face in an increasingly digital-first environment, and IKEA's plans to invest in improving accessibility and modernizing its physical and digital offerings.